We actually have a reason to believe that the standard risk attracted business is a net-negative for society. These businesses tend to rely on government bailouts when their risky behavior doesn’t work out, or they lay off a large number of people, or they cause massive environmental damage, etc. I much prefer a business that plays it safe and doesn’t risk our environment and our economy while maximizing the profits they give to their shareholders.
Secondly, there is no reason to believe that a CEO is any sort of supreme decision maker of a company. Perhaps a democratized workplace—where the workers have a say in whether the business should engage in a risky behavior—is better at evaluating the risk. If that is the case then a CEO dictator might not want to lead the business into a risky endeavor at since they might get sued if it goes wrong, but workers who have only their jobs to loose might vote to do exactly that.
I find the society-wide stagnation prediction lacking in imagination.
That would incentivize extremely risk-averse decisions by business leaders and lead to society-wide stagnation. The result would be far more suffering overall.